State-Level Gambling Legality in Delaware
Delaware has established a unique, lottery-run model for legal gambling. As the first state to launch a full-scale legal online gaming system in 2013, Delaware's legal framework is highly centralized. The Delaware Lottery oversees all aspects of gambling in the state, including the operations of the three land-based racinos, online casinos, and sports betting. It works in conjunction with the Delaware Division of Gaming Enforcement (DGE), a branch of the State Police, which is responsible for investigating criminal offenses, conducting background checks for licensing, and ensuring the integrity of the gaming industry.
The state offers a full range of legal gambling options, including:
- Land-based casinos at the three racinos: Delaware Park, Bally's Dover, and Harrington Raceway & Casino.
- Online casinos and online poker, which are all operated on a single platform in partnership with BetRivers.
- Sports betting, which is also run through a centralized platform, with both retail and online options.
- Daily fantasy sports (DFS), which was legalized in 2017.
- The Delaware Lottery, which offers traditional draw games and instant-win scratch-offs.
Delaware's gambling laws are codified in Title 29 of the Delaware Code, and the state's model is often cited for its streamlined, centralized approach. This structure ensures strict oversight and a high degree of player protection.
Gambling Taxes in Delaware
All gambling winnings in Delaware are subject to both federal and state taxes. Players must report their winnings on their state income tax return, and operators are required to issue a W-2G form for qualifying payouts.
For operators, the tax structure is distinctive. Delaware imposes a 50% tax on gross gaming revenue (GGR) for sports betting and a tiered tax on online and video lottery revenue that can be as high as 43.5%. This high tax rate reflects the state's lottery-run monopoly model, where a significant portion of the revenue is directed back into the state's General Fund to support public services.